1. education
2. adult education

Managing the Diverse
Workforce
Chapter 11
Bateman and Snell
Learning Objectives
After studying Chapter 11, you will know:
how changes in the U.S. workforce make diversity
a critical organizational and managerial issue
the distinction between affirmative action and
managing diversity
how companies can gain a competitive edge by
effectively managing diversity
what challenges a company is likely to encounter
with a diverse workforce
how an organization can take steps to cultivate
diversity
Diversity: A Brief History
Managing diversity
understanding and appreciating employee
differences to build a more effective and
profitable organization
recognizing the characteristics common to
specific groups of employees while dealing with
such employees as individuals and supporting,
nurturing, and utilizing their differences to the
organization’s advantage
Diversity Today
Diversity
broad term used to refer to all kinds of
differences
• race, age, sex, religion, attitudes, physical abilities,
life interests, expectations, flexibility,
aggressiveness, extroversion
members of different groups share common
values, attitudes, and perceptions
• there is still much diversity within each group
Components Of A Diversified
Workforce
Age
Racial and ethnic
minorities in the
United States
Immigrants
Physically and
mentally disabled
Gender
Other
Workforce
Diversity
Religious affiliation
Veteran status
Sexual orientation
Expectations and values
Lifestyle
Skill level
Educational level
Economic class
Workstyle
Function and/or position
within the company
How Effective Is Your Diversity Program?
Ineffective
2%
Somewhat
ineffective
Undecided
11%
Very
Effective
8%
8%
Somewhat
effective
49%
Effective
22%
Diversity Today (cont.)
Workers of the future
until recently, white, American born males dominated
the U.S. workforce
• now, they only account for 15 percent of the net growth
Gender issues - growing number of women working
outside the home
• balancing work life with family responsibilities and parenting
presents an enormous challenge
• average full-time working female earns about 77% of the
average full-time working male
– result of both the level and type of work performed by women
– glass ceiling - invisible barrier hindering women and minorities
from moving beyond a certain level in the corporate hierarchy
Diversity Today (cont.)
Workers of the future (cont.)
Gender issues (cont.)
• sexual harassment - conduct of a sexual nature that
has negative consequences for employment
– EEOC - investigates and prosecutes cases of sexual
harassment
– quid pro quo harassment - submission to or rejection of
sexual conduct is used as a basis for employment decisions
– hostile environment - unwelcome sexual conduct has
the purpose or effect of reasonably interfering with job
performance or creating an intimidating, hostile, or
offensive working environment
• the changing status of women has given men the
opportunity to redefine their roles, expectations, and
lifestyles
Diversity Today (cont.)
Workers of the future (cont.)
Minorities and immigrants - growing percentage of
the workforce
• estimated that 14 percent of the work force is foreign born
• African Americans are about 12 percent, Asian Americans are
about 5 percent, Hispanic Americans about 12 percent
• Asians and Hispanics are growing the fasted
Mentally and physically disabled - largest
unemployed minority population is the U.S.
• disability - a physical or mental impairment that substantially
limits one or more major life activities
• disabled lack access to educational and workplace
environments
• attitudes of employers an important barrier to employment
Diversity Today (cont.)
Age of the workforce
average age is increasing
• many older workers are opting for early
retirement
• fewer new workers will enter the labor force
than will be lost through retirement
retirement-age workers can be encouraged
to remain or reenter the workforce on a
flexible or part-time basis
Diversity Today (cont.)
Future jobs and workforce qualifications
the U.S. is becoming a predominantly serviceoriented economy
people without high school diplomas are at a
distinct disadvantage
gap is growing between the knowledge and skills
jobs require and those many employees and
applicants possess
• literacy is often the underlying problem
• employers are combating this basic-skills gap
– offer in-house basic-skills training program
Managing Diversity Versus Affirmative Action
Affirmative action (AA)
instituted to curb discrimination and correct the past
exclusion of women and minorities from U.S.
organizations
nonetheless, employment discrimination still persists
• AA has not adequately improved the upward mobility of
women and minorities
reverse discrimination exists when qualified white
males are passed over for employment opportunities
Managing diversity
means moving beyond legislated mandates to embrace
a proactive business philosophy that values differences
eliminates barriers that hinder attainment of full
potential
Managing Diversity Versus Affirmative
Action (cont.)
Competitive advantage through diversity
original impetus to diversity workforces was social
responsibility and legal necessity
• today, many organizations are also approaching diversity
from a more practical, business-oriented perspective
Ability to attract and retain motivated
employees
• companies with reputation for diversity have competitive
advantage in the labor market
• companies will be sought out by most qualified
employees
• employees who believe that their differences are valued
may become more loyal, productive, and committed
Managing Diversity Versus Affirmative
Action (cont.)
Competitive advantage through diversity (cont.)
Better perspective of a differentiated market
• as the composition of the American workforce changes, so
does the customer base of these companies
– diverse customers may prefer to patronize such organizations
• a multicultural workforce can provide a company with greater
knowledge of the preferences and consuming habits of this
diversified marketplace
Ability to leverage creativity and innovation in
problem solving
• people from different backgrounds hold different perspectives
• diverse work groups are freer to deviate from traditional
approaches
Managing Diversity Versus Affirmative
Action (cont.)
Competitive advantage through diversity
(cont.)
Enhancement of organizational flexibility
• managing diversity requires a corporate culture that
tolerates different styles and approaches
Challenges of a diverse workforce
Lower cohesiveness - lack of similarity in
culture causes diverse groups to be less cohesive
Communication problems - most common
negative effect
• diversity increases errors and misunderstandings
Managing Diversity Versus Affirmative
Action (cont.)
Challenges of a diverse workforce (cont.)
Mistrust and tension - mistrust and
misunderstanding of those who are different
because of a lack of contact and low familiarity
Stereotyping - inappropriately stereotype their
“different” colleagues rather than accurately
perceiving and evaluating those individuals’
contributions, capabilities, aspirations, and
motivations
• stereotypes affect how people are treated
Multicultural Organizations
Monolithic organizations
an organization that has a low degree of integration
• employs few women, minorities, or other groups that differ
from the majority
– low minority employees must adopt the norms of the majority
• has a highly homogeneous employee population
Pluralistic organizations
have a more diverse employee population
use an affirmative action approach to managing
diversity
some acceptance of minorities into the informal
network
much less discrimination and less prejudice
Multicultural Organizations (cont.)
Multicultural organization
values cultural diversity and seeks to utilize and
encourage it
fully integrate gender, racial, and minority group
members both formally and informally
absence of prejudice and discrimination
low levels of intergroup conflict
synergistic environment
• all members contribute to their maximum potential and
the advantages of diversity can be fully realized
How Organizations Can Cultivate A
Diverse Workforce
Top management leadership and commitment
top management support is critical
incorporate organization’s attitudes toward diversity
into the corporate mission statement, strategic plans,
and objectives
establish corporate offices or committees to coordinate
the companywide diversity effort that provides
feedback to top management
minority advisory groups or task forces to monitor
organizational policies, practices, and attitudes
• assess program impact on diverse groups
• provide feedback and suggestions to top management
How Organizations Can Cultivate A
Diverse Workforce (cont.)
Organizational assessment
establish an ongoing assessment of the
organization’s workforce, culture, policies, and
practices
• identify problem areas
• make recommendations where changes are needed
corporate values and norms should be identified
and critically evaluated regarding their necessity
and their impact on the diverse workforce
How Organizations Can Cultivate A
Diverse Workforce (cont.)
Attracting employees
Recruitment - a company’s image can be a
strong recruiting tool
• a reputation for hiring and promoting all types of people
can be a competitive advantage
• many minorities and economically disadvantaged people
are physically isolated from job opportunities
– companies can bring information about job opportunities
to the source of labor
– companies can transport labor to the jobs
How Organizations Can Cultivate A
Diverse Workforce (cont.)
Attracting employees (cont.)
Accommodating work and family needs
• corporate work and family policies are now one of the
most important recruiting tools
• providing child care leads to:
– decreased turnover and absenteeism
– improved morale
• concerns for dual-career couples expressed by:
– limiting relocation requirements
– provide job search assistance to relocated spouses
How Organizations Can Cultivate A
Diverse Workforce (cont.)
Attracting employees (cont.)
Alternative work arrangements
• offer flexible work schedules and arrangements
– compressed workweeks
– job sharing - two part-time workers share one fulltime job
– teleworking - working from home
– telecommuting - working from home via computer
hookup to the main worksite
How Organizations Can Cultivate A
Diverse Workforce (cont.)
Diversity training
attempt to identify and reduce hidden biases and
develop skills needed to effectively manage a
diversified workforce
Awareness building - to increase awareness of
the meaning and importance of valuing diversity
• sensitize employees to assumptions they make about
others
• become familiar with stereotypes and cultural differences
• become familiar with organizational barriers that inhibit
the full contributions of all employees
• teach the unwritten “rules” or cultural values to those
who need to know them
How Organizations Can Cultivate A
Diverse Workforce (cont.)
Diversity training (cont.)
Skill building - designed to allow all employees to
develop the skills they need to deal effectively with one
another and customers in a diverse environment
• most of the skills taught are interpersonal
• develop personal action plans before they leave the program
• experiential exercises and videotapes often are used
Retaining employees
Support groups - form minority networks to promote
information exchange and social support
• provide emotional and career support
• help diverse employees understand work norms and cultures
How Organizations Can Cultivate A
Diverse Workforce (cont.)
Retaining employees (cont.)
Mentoring - higher-level managers help
ensure that high-potential people are
introduced to top management and socialized
into the norms and values of the organization
• help diverse employees enter the informal network
Career development and promotion -
establish teams to evaluate the career progress
of diverse employees
• devise ways to move them up through the ranks
How Organizations Can Cultivate A
Diverse Workforce (cont.)
Retaining employees (cont.)
Systems accommodation - recognize:
•
•
•
•
cultural and religious holidays
differing modes of dress
dietary restrictions
needs of individuals with disabilities
Accountability - managers held accountable for
workforce development
• performance appraisal and reward systems reinforce the
importance of effective diversity management